“Culture” has been a corporate buzzword for a long time; but what does it really mean for you and for the ongoing success of your business? And, how can you build a culture of engagement, productivity and success as you move forward in 2018?
In a word, culture is the personality of your organization. Entrepreneur.com describes it as “a blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time.” Culture is defined by what a company stands for and how it treats others.
Culture and Retention
Numerous studies have illustrated a direct correlation between company culture and employee turnover, which in turn impacts productivity and long-term business success.
- Recent research at Columbia University shows that the likelihood of turnover at companies with rich cultures is 13.9 percent, versus 48.4 percent at those organizations with poor cultures. Unhappy employees tend to do only the minimum required of them. Good workers who feel unappreciated are likely to quit – and poor managers negatively affect their team members.
As noted by Harvard Business Review blogger Rob Markey, “Loyal, passionate employees bring a company as much benefit as loyal, passionate customers. They stay longer, work harder, work more creatively, and find ways to go the extra mile. They bring you more great employees. And that spreads even more happiness – happiness for employees, for customers, and for shareholders.”
Culture and Profit
The Department of Economics at Warwick University has reported that happy employees are 12 percent more productive than the average worker, whereas unhappy employees are 10 percent less productive. Dissatisfied workers cost American businesses more than $300 billion dollars each year. And, happy people are more likely to solve problems in an efficient, effective way.
- Numbers talk. Low-level engagement within companies can result in a 33 percent drop in operating income, and an 11 percent slump in earnings growth. By comparison, companies with high-level engagement enjoy an average 19 percent rise in operating income and a 28 percent increase in earnings growth.
How to Craft a Winning Culture
If your culture and your people share values, but those values don’t align with your business goals, it can be hard to achieve desired results. To avoid this disconnect, learn what guides your company culture and influences the way your teams work.
- Set clear intentions. Define goals for your culture, and then enact change. Ask yourself and the other members of your leadership team: What values do we want our employees to share with each other, and with our customers? What are our primary communication tools … and are they working? What sets us apart from the competition? And, what does our ideal employee look like?
- Involve your employees. Identify culture ambassadors. Personal attitudes and values are most influenced by the people we spend the most time with. For the average worker, this is their fellow team members. Your culture ambassadors should be strong communicators and good listeners, who are able to provide reliable feedback and inspire their co-workers.
PrideStaff Modesto has a proven record of success in designing custom workforce growth solutions and helping leading companies build industry-leading cultures. Let’s make 2018 your year for cultural success! Contact us today to learn more.